Build-to-Rent’s Growing Appeal to Multifamily Investors

Real estate investment can be a marathon, not a sprint, and for Cedric, it was a journey of careful planning, calculated risks, and continuous learning. Alongside his wife Bea, Cedric has built a portfolio of four income-producing properties since 2017, evolving his strategy from a bold, sight-unseen purchase to a meticulously planned approach focused on cash flow and long-term appreciation. A Bold Beginning: Learning from a High-Risk First Step Cedric and his wife spent years considering real estate investment, poring over books and resources, before finally taking the plunge in 2017. Their very first transaction was an unconventional one: a tax sale auction. They purchased a property sight unseen, relying only on exterior photos available online. "We decided to hit the button and hit the gas pedal," Cedric recalls, describing the competitive bidding process. They won the auction, but the immediate thought was, "Okay, now what?" The property was in rough shape, requiring significant work. Adding to the challenge, they were living in a different state. After a 14-month process to secure a clear title, they sold the property for a profit of approximately $14,000, making a quick decision not to repeat that specific high-risk method. "It was definitely high risk," Cedric admits, acknowledging they "got lucky" that it worked out. This initial experience, though profitable, solidified their desire for a more traditional and manageable approach. Shifting Gears: Embracing Strategic Financing Following their initial, high-octane purchase, Cedric and his wife pivoted. They decided to leverage their existing knowledge from buying personal residences. Their second, third, and fourth properties, all purchased between January 2020 and February 2025, followed a more conventional path. Initially, they financed properties in their personal name through traditional, big bank lenders and directly with builders, then transferred ownership to their LLC. However, Cedric recognized the inefficiency of this multi-step process. He sought a direct solution, leading him to LendingOne. With LendingOne, Cedric was able to secure a DSCR loan, financing his fourth property entirely under his LLC from start to finish. This streamlined approach allows him to build his portfolio more efficiently. Cedric, Investor Today, all four of his properties are fully occupied rentals, managed by a dedicated property management company. Navigating Obstacles with Tenants Cedric has faced his share of challenges. The most significant occurred with a tenant in their first conventionally purchased property in 2020. After nine months of smooth sailing, the tenant became consistently late on payments. An eviction process was initiated, but the tenant caught up. However, the issue resurfaced three months later, eventually leading to the tenant moving out. While there was some minor damage, the relatively easy resolution was a "blessing." This experience prompted a shift in their tenant screening process. Cedric now meticulously tracks tenant history and targets individuals with a higher minimum credit score requirement. This adjustment has proven effective, leading to more consistent rent payments and fewer issues. Long-Term Vision to Scale Cedric, who recently retired, has clear long-term goals for his real estate investments. His short-term objective is to reach five properties in the next few years. Beyond that, he aims for the business to become self-sustaining. His strategy involves leveraging the equity from his existing properties as down payments for future acquisitions, aiming to grow his portfolio to at least 10 properties. This methodical expansion is designed to ensure continued cash flow and financial independence.Cedric, Investor Key Advice for Aspiring and Growing Investors Cedric offers four vital pieces of advice for those looking to get into or grow their real estate investment portfolio: Utilize a property management company: For handling day-to-day operations, rent collection, and eviction processes if needed. Timing is everything: Look to buy when the market is depressed, as he did during the onset of COVID-19 in 2020, which led to significant appreciation. Location, Location, Location: Focus on properties in good school districts (A-rated or 8/10+) and look for at least three-bedroom, two-bathroom layouts. Run the Numbers (Cash Flow is King!): Meticulously calculate all potential income against expenses (mortgage, insurance, HOA fees, property management) to ensure the property generates positive cash flow. He aims for at least a 20% gross profit margin to build cash reserves for repairs and maintain a healthy business bank account. A Smooth Lending Experience: The LendingOne Difference Cedric recounts a notably smooth experience with LendingOne, particularly compared to past interactions with other lenders. He found the process "smoother than I expected it to be," highlighting the ease of online document submission and the efficient communication with his loan officer, Edrony, and underwriter, Pierre. Cedric explained that working with LendingOne was straightforward: "I just went to the website, uploaded... talked with Edrony... supplied additional information... and everything worked out." He praised the entire process from application to closing as "100% fantastic." This positive feedback underscores LendingOne's commitment to efficient and client-focused service.

Price reductions on home listings have returned to a level not seen in nearly three years, with 21% of U.S. active listings this summer seeing a cut—up more than five percentage points from July 2024. For investors—particularly in the single-family rental space—this environment can mean stronger negotiating power and a greater chance to acquire properties at a discount. That’s why LendingOne analyzed Realtor.com’s metro-level inventory data to find where price cuts are most common and where they’re rising fastest.  Topline Findings National price cut rate reached 21% in July 2025, matching the post-pandemic high from September 2022 Price cut activity is highest in Sun Belt metros, where home prices skyrocketed during the Pandemic Housing Boom Price cuts are becoming more common in most of the largest U.S. metros, with 42 of 50 seeing more active listing prices cut than one year ago Price reductions are back at post-pandemic highs The rising share of homes with a price cut reinforces the shift toward a more buyer-friendly market that began after mortgage rates surged and the Pandemic Housing Boom ended.  Share of U.S. Home Listings with Price Reductions A single price cut doesn’t necessarily mean home values are dropping; some sellers simply overshoot the market or the true value of their property. The real signal comes from the trend. So when the share of listings with cuts rises beyond normal seasonal patterns, it suggests the market is cooling and buyers have gained leverage. Right now, that’s exactly what’s happening. Elevated mortgage rates and swelling inventory in certain metros are forcing more sellers to adjust their asking prices.  Here’s the share of U.S. home listings seeing a price reduction, by July:  July 2017 → 19.24% July 2018 → 20.59% July 2019 → 17.70% July 2020 → 11.11% July 2021 → 9.77% July 2022 → 19.13% July 2023 → 15.50% July 2024 → 19.52% July 2025 → 20.58% The U.S. metros with the deepest price cut activity Some markets are seeing price cut shares far above the national average—often those that experienced rapid pandemic-era price growth and are now adjusting to affordability limits. Share of U.S. home listings with price reductions Among the largest 100 U.S. metros, these are the 10 that saw the largest price reduced share of listings in July 2025: Denver-Aurora-Centennial, CO → 32.9% Colorado Springs, CO → 32.2% Portland-Vancouver-Hillsboro, OR-WA → 31.3% Austin-Round Rock-San Marcos, TX → 31.2% Dallas-Fort Worth-Arlington, TX → 31.2% Phoenix-Mesa-Chandler, AZ → 30.9% Salt Lake City-Murray, UT → 29.7% Indianapolis-Carmel-Greenwood, IN → 29.5% Jacksonville, FL → 29.1% Tampa-St. Petersburg-Clearwater, FL → 28.9% In Mountain West metros like Denver and Colorado Springs, years of rapid price appreciation have left affordability stretched, and elevated mortgage rates are now forcing more sellers to drop prices. West Coast markets like Portland are dealing with slower in-migration and persistent affordability challenges,  Meanwhile, Sun Belt metros, on top of dealing with the Pandemic Housing Boom price shocks, are facing intense competition from a surge in both new construction and resale listings. For investors, these areas can offer higher negotiating leverage now—especially if rental demand remains strong despite softer sales activity. Where price cuts are ramping up While metros like Denver and Austin have among the largest shares of listings being cut, the Sun Belt isn’t catching a break. Many metros here are seeing the fastest gains in price cut activity as a flood of new supply collides with softer demand, forcing sellers to get aggressive.  Mountain West markets are also posting some of the biggest jumps, even after starting with already-high price cut rates. Affordability pressures remain intense, and the seasonal bump in inventory is only adding to seller urgency—conditions that can open the door for well-timed acquisitions. Even in the Midwest, markets like Columbus are seeing momentum build as inventory piles up after a strong post-pandemic run. For investors, that could mean more negotiating leverage and a wider selection of deals as head into the next year. The share of home listings with price cuts is rising in 42 of the 50 largest metro areas Big Picture Price cuts are back at post-pandemic highs, led by Sun Belt and Mountain West metros where high rates and swelling inventory are forcing sellers’ hands. For investors, that could mean an opportunity to lock in a great deal on their next rental.

By and large, renters who remain in their homes longer signal more than just personal preference—they often indicate market stability, constrained supply, and a lower turnover rate. For real estate investors, that can translate into stronger cash flow, lower maintenance costs, and higher tenant reliability over time. According to a recent Redfin report, a third (33.6%) of U.S. renters have lived in the same home for at least five years, up from 28.4% a decade ago. On a regional level, however, the popularity of long-term rentership varies—often shaped by local affordability, supply constraints, and demographic trends. To better understand how renter stability is evolving, LendingOne analyzed Redfin’s historical tenure data to pinpoint the markets with both the largest current share of long-term renters and the most significant growth since 2013. Topline findings Inland California markets like Riverside, Stockton, and Bakersfield have seen long-term renter shares rise by over 15 percentage points since 2013. Midwest metros like Dayton and Grand Rapids are also seeing a rise in long-term rentership, driven by aging populations, affordability pressures, and limited supply. New York and Los Angeles have the highest share of renters staying 5+ years overall—driven by rent control, low turnover, and high ownership barriers that influence renters to stay put. Where long-term rentership is climbing the most In some markets, long-term renting has become the new normal. Specifically, California metros are seeing the biggest gains in long-term rentership due to a combination of housing shortages, rising home prices, and affordability pressures that make it harder for renters to move.  Limited new construction has further contributed to renters staying in place longer. In inland markets especially, these factors are locking tenants into longer stays—even as population and investor interest have grown. Long-term rentership gains popularity in 48 of the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the biggest percentage point jumps in long-term rentership from 2013 to 2023: Riverside, CA: +18.0% Stockton, CA: +16.7% Bakersfield, CA: +16.2% Sacramento, CA: +16.0% Oxnard, CA: +15.1% Fresno, CA: +14.9% Dayton, OH: +14.5% Las Vegas, NV: +13.5% New Orleans, LA: +11.2% Grand Rapids, MI: +11.1% The markets where long-term rentership is already the norm While some markets have seen the largest gains in long-term renters over the past decade, others already have a deeply rooted renter base. In these metros, renters staying five years or longer is the norm. These markets tend to share certain traits: older housing stock, tighter rental supply, and higher barriers to homeownership, whether due to pricing or lending challenges. For real estate investors, these markets may offer even more stability, with long-term tenants helping to ensure predictable income and lower turnover-related costs. However, investors in these markets should proceed with caution. While high-tenure markets offer predictable income and lower turnover, they can also come with drawbacks. Strict rent controls and regulatory hurdles in these areas may limit rent increases, while older housing stock can mean higher maintenance costs. Long-term rentership share in the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the largest share of long-term renters in 2023: New York, NY: 51.1% Los Angeles, CA: 47.8% Stockton, CA: 46.0% Springfield, MA: 43.7% Fresno, CA: 43.1% Riverside, CA: 42.8% New Haven, CT: 42.7% Oxnard, CA: 42.0% Allentown, PA: 40.8% San Francisco, CA: 40.5% Why national renter tenure is on the rise A growing number of renters are staying in place longer—not necessarily because they want to, but because moving has become more difficult. Affordability pressures are a significant driver. Home prices have surged since pre-pandemic, with the typical U.S. home price rising 49% from June 2019 to June 2025, according to LendingOne’s analysis of Zillow Home Value Index data. The result: many households are finding it harder to move, let alone transition into homeownership. Year-over-year shift in home prices across the 50 largest metro area housing markets In some regions, limited rental supply is also keeping turnover low, as tenants face fewer viable options when leases end. Additionally, an aging renter population and shifting lifestyle preferences are contributing to longer stays. Big Picture The rise in long-term rentership reflects a meaningful shift in the structure of the U.S. housing market. For many households, renting is no longer just a temporary phase—it’s a reality shaped by affordability constraints, demographic changes, and lifestyle preferences.  For investors, that shift presents both opportunities and risks. Markets with rising tenure may offer more predictable income, reduced turnover, and steadier occupancy. But they can also require longer-term strategies, especially in places with slower rent growth, tighter regulations, or an aging housing stock.